Abstract
Objectives: The study aims to examine the factors and context that encourage the adoption of e-commerce among selected Canadian companies. Methods: The study employed Benaroch use of real-option theory in assessing risk factors from 811 Canadian companies. Furthermore, the NEBIC model was used to analyse firms’ capacity in managing e-commerce. Data were analysed using maximum likelihood estimation, correlation matrix, and t-test of means equality. Findings: The study arrived at the following conclusion on the basis of the results obtained: technology-competent employees, competitive industry, and high variability of consumer sales positively correlate with the decision to use e-commerce. Applications: The study also found the agility of the firm to work on e-commerce positively correlates with e-commerce usage. Agility is attained by intensive e-commerce technology in-house training, encouraging its customers to use its e-commerce facility, and promoting e-commerce among other members of the industry.Keywords: E-commerce, Information Technology Investment, Real Option, Selling Online
Highlights
IntroductionSince the advent of the Internet, many companies have tried to use this channel to boost sales
E-commerce has been considered a key strategy for many companies
We propose the following hypothesis: H3: Firms experiencing a high variability in their demand are less likely to adopt e-commerce
Summary
Since the advent of the Internet, many companies have tried to use this channel to boost sales. There are a few success stories, but due to the low entry cost, even though many have tried using it to boost sales, their sales volume through the Internet has not been substantial.. The real-option approach, together with other statistical techniques, was used to explain why a business would consider e-commerce. Using appropriate statistical techniques this study dissected the risks involved in e-commerce adoption. Due to their quantitative orientation, the techniques utilized in the present study pointed to the direction in which a certain variable favoured the decision to adopt e-commerce
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